Economy, Dividends Pay Yard Diversity, New Products for Consumer-Oriented

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\ [r'l rlurs aft,'l llre pullrrcrs stitt'lt'r{ putting up their first building they were joined by Jack Russi, a youngster who had formerly worked with Callaway at the Hammond yard. Russi is now a stockholder in the firm, which has since incorporated. EIse retired from active operation of the firm several years ago. ttW'e've come a long way since then," the dealer continued. "This year we're shooting for the $l million mark in gross sales." The firm serves a marketing area that has ex. panded to a population of 150,000.

Capitalized at $35,000, the company had been in operation only one month when their accounts receivable exceeded their capitalization. A bank loan provided some badly-needed working capital.

"The payroll in those lean days was just whatever it took to meet household expenses,t' 'Callaway temembered. One entry in the firm's books during those first months listed "salary . . $13 (groceries)."

The Roman philosopher Utica ofiered an observation that aptly describes the C&E operation. He said, "Economy is in itself a great source of revenue."

Nothing is wasted at the yard, evidenced by the always-empty scrap bin. Warped and checked lumber is cut up and sold as dunnage to industrial customers. Cut-ofis are sawed up into stakes and sold to a local paving company. Scrap lumber and other waste is included in the manufacture of pallets, a sideline that has developed into a source of steady income.

"These are primarily salvage operations, but when you're totalling figures at the end of the year every little bit helps," says Callaway.

A big source of revenue is provided by a new product which is manufactured from lodgepole pine, a weed species fourrd in thick growths in Idaho and Montana. The species has litde commercial value.

Callawan who had fornerly lived in Idaho, hit on the idea of using the trees tq. make rail fences. Since the natural bole of the tree could be used, all that was neces-' sary was to cut them down and debark them.

,Callaway decided to buy a carload of tle pine trees and try to sell them for fencing. He called on Jack Russi to design a machine to dowel the ends and drill the posts. .,,.; Jack took his ideas to a local welder who put the machine together. , lj

Larger trees are drilled and used as the fence posts. Medium ones are doweled for the rails, and small ones are sold as treo stakes, which customers use as supports for' ..t young trees.

Last year, C&E sold eight carloads of the lodgepole pine, which they merchandise as ".,; Driftwood Rail Fences. Their marketing area for the product now extends from San Diego to San Francisco, and they eventually plan to try national distribution. Next year tlrey expect to sell 12 carloads.

All the fencing rnaterials and tree stakes are dipped in a Kenite preservative treating tank, which turns the wood a rustic brown.

The treating operation represents another direction in which the firm has diversified. : They do a booming business in custom ;l treating and staining.

Now in their 13th yearo C&E has 11 employeeso half of whom are stockholders ini the corporation. A healthy profit-sharing and retirement plan makes for a well-satis-, fied group of workers.